M/S Rajlaxmi Agro Food Product PVT. LTD. And Anr vs. The Suptd CGST Cx Berhampore Range Berhampore Divi. Bolpur Comm. And Ors
Facts
The appellants, M/s. Rajlaxmi Agro Food Product Private Limited & Anr., filed an intra-Court appeal against an order dated 21st December, 2023, passed by a learned writ court. The writ court had declined to grant an interim order but directed the respondents to file affidavits-in-opposition. The appellants had already paid the entire due amount under protest and challenged the demand of penalty. The penalty was imposed by an order in original dated 20th March, 2023, and confirmed by the appellate authority in its order dated 31st October, 2023. The appeal sought to restrain recovery proceedings for the penalty.
Held
The Court held that since the appellants have already paid the entire due amount under protest, and the demand of penalty is under challenge, the respondents should be restrained from initiating any recovery proceedings to recover the penalty imposed. The reasoning appears to be that allowing recovery of the penalty while it is being contested would cause irreparable harm to the appellants and negate the purpose of their challenge. The Court directed that the respondents are restrained from initiating any recovery proceedings to recover the penalty, as imposed in the order in original dated 20th March, 2023, confirmed by the appellate authority in its order dated 31st October, 2023. No issue was expressly left undecided.
Key Issues
1. Whether the Court should grant an interim order to restrain recovery proceedings for penalty, given that the principal due has been paid under protest. (Question of law). The appellants argued that since the entire due amount has been paid without prejudice to their rights, and the penalty itself is under challenge, recovery proceedings for the penalty should be restrained. They contended that continuing recovery proceedings would render their challenge to the penalty infructuous. The respondent CGST Authority did not record any specific arguments against granting the interim relief in the provided text.
AI-generated summary — verify with the full judgment below
2024 25 PG/KS Ct. No.1 M.A.T. 41 of 2024 With IA No. CAN 1 of 2023 + CAN 2 of 2023 M/s. Rajlaxmi Agro Food Product Private Limited & Anr. Vs. The Superintendent, CGST & CX, Berhampore Range & Ors. Mr. Ankit Kanodia Ms. Megha Agarwal Mr. Jitesh Sah …..for the Appellants Mr. K. K. Maiti Mr. Tapan Bhanja …..for the CGST Authority Mr. Ranjan Kumar Sinha Mr. Anup Dasgupta …..for the respondent no.4
This intra-Court appeal by the writ petitioners is directed against the order dated 21st December, 2023 passed in W.P.A. 28336 of 2023, by which the learned writ court declined to grant any interim order but, directed affidavit-in-opposition to be filed by the respondents.
It is seen that the appellants have already paid the entire due without prejudice to their rights and the demand of penalty has also been challenged in the writ petition.
Since the due has already been paid by the appellants under protest, the respondents are restrained from initiating any recovery proceedings to recover the penalty, as imposed in the order in original dated 20th March, 2023 confirmed by the appellate authority in its order dated 31st Octo
The judgment continues below.
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